Accelerating economic growth and job creation in Bangladesh

Bangladesh has a major opportunity to address one of its most pressing development challenges: creating 20 million new jobs over the next decade.  And the trade agenda will be a centerpiece of any strategy that seeks to address this challenge.
 
Join me for a Facebook Q/A chat on January 28 to discuss this and other findings from the recently released report Toward New Sources of Competitiveness in Bangladesh co-authored with Mariem Mezghenni Malouche.
 
Below are some 4 highlights from the report, which we will be discussing. I look forward to your questions and a vibrant discussion!
 

1. Bangladesh will need to expand its linkages with neighboring countries such as China and India as well as other Asian countries like Japan and South Korea.  Not only are these very large markets, they are also potential sources of greater foreign direct investment.  What are the critical steps that will allow this to happen?  How can the recently signed Motor Vehicles Agreement between Bangladesh, Bhutan, India and Nepal help?  What are the barriers to Bangladesh’s venturing into new markets?


2. Bangladesh will need to gradually diversify its export base into new product areas while also strengthening its position as the second-largest garment producer in the world (after China).  Our report explores the critical challenges that could allow this to happen.  In your view, what challenges lie ahead if Bangladesh tries to diversify its exports?  Can you name some prospective industries (for diversification)? What will be the role of foreign direct investment in this diversification?  What kind of reforms are needed to attract more domestic as well as foreign direct investment?


3. Both the Government of Bangladesh and the private sector need to continue their efforts to improve labor and work safety-to ensure continued access to markets where consumers are increasingly attentive to worker conditions.  In addition, our report discusses the need for young people to acquire the general and specific vocational skills that will enable better productivity and so increase Bangladesh’s competitiveness in a broader range of sectors.  In your view, what are the respective roles of the private and public sectors in this regard?


4. Bangladesh will need to improve the ability of its institutions to coordinate and implement the inherently multi-sectoral agenda outlined above.  Enhancing export growth involves many agencies, such as the Ministry of Commerce, the National Board of Revenue, the Ministry of Industry, the Ministry of Shipping, the Ministry of Road Transport and Highways, etc.  Coordinating these agencies is a demanding task, and will require a high level inter-agency body, chaired by a powerful minister.  In your view, how can this be accomplished?  What do you think are critical capacity constraints that relate to the trade agenda, and that would allow Bangladesh to leverage trade to enhance job creation and become a middle income country by 2021?